Naturally, SMEs face numerous challenges throughout their life and cash flow issues are usually at the top of the list for most businesses.
A recent study by Barclaycard revealed that 63% of SME decision-makers worry about their businesses’ cash flow.
Cash is vitally important for the health of all businesses as it oils the wheels of everyday operations.
It is also a necessity to help develop a sustainable future being required to take advantage of growth opportunities as and when they arise, expand product ranges and invest in new technologies.
Without access to funding, even the most profitable businesses will be restricted in their ability to maintain and grow their operations effectively.
SMEs can often spend a good deal of time securing funding, time that could be better spent actually running and developing their businesses.
The struggle to secure an acceptable funding package with preferred lenders, or negotiate credit from suppliers, can often cause financial headaches for the entrepreneur.
As victims of the supply chain financial squeeze, SMEs often receive payments late from dominant customers, pay invoices early to powerful suppliers and can be forced to bulk buy stock in order to secure the best prices.
It comes as no surprise that this results in a need to secure additional funding.
So how can businesses find cash to operate effectively and grow with confidence?
Often by obtaining a better financing deal, SMEs can release ‘trapped cash’ to invest back into the business, or decrease financing costs by reducing the need to borrow as much.
There are many lenders in the UK now keen to fund SMEs utilising a myriad of different products; products which often appear complex and confusing to the busy business owner and so thoughts of financing are put to one side to consider at a later date.
Whilst a complex area, business owners must consider all potential financing options available to them in order to ensure that they secure a facility best suited to their requirements.
Businesses need cash and in today’s complex funding environment, they want a smart funding solution which brings knowledge and support along with it.
Steve Elsigood, KPMG Enterprise Financing KPMG Enterprise Financing is a dedicated team, based around the UK, which assists privately owned companies to assess their funding requirements.
Our experienced team has a wide knowledge of the options available in the market today and would be pleased to support any business owner seeking funding, whether new debt finance or a refinance of an existing facility.
We assist our clients in finding the right funding package for their businesses from a lender that understands the needs of the client and is keen to support their aspirations.
Whether you are assessing new funding for your business to get to the next level, or maybe you just want to discuss what you have been offered by a lender, please get in touch to discuss how we could help.